#PROJECT-Ras Al Khaimah: LA HOYA BAY RESIDENCE (Al Marjan Island)

[Morrismarina]

In summary this is the problem from what I can gather:

SP agreed to sell over 200 units being the entire stock of Starfish, Block E. As SP are very keen on offering escrow facilites they persuaded Khoie to specifically set up an escrow account facility for the SP sales for this block. (I'm currently in the process of buying a second unit via Dream Homes and I can confirm that there is no escrow facility in place).

SP then launched their own Pacific development and started selling this in preference to LHB. So Khoie had no choice but to take back all the stock allocated to SP as of course in reality very little was going to be sold by SP now.

SP only sold 30 units but this has given Khoe a problem as they have 30 "rogue" units subject to escrow whereas the rest of LHB is not. Also I've heard that when RAKEEN found out about the escrow facility they were not too pleased with Khoie and perhaps RAKEEN are now putting pressure on Khoie to scrap the escrow facility. No doubt Khoie don't really want it either as it's going to be a pain to deal with for such a small number of units. And Khoie must somewhat dissappointed with SP for not selling all their units as per the agreement, which no doubt caused Khoie put in a lot of extra work setting up an escrow facility for essentially nothing at the end of the day.

So, Khoie have held up signing and returning the SP derived contracts for over 4 months whilst they try and sort this out. It appears now the only solution is to remove the escrow facility and proceed without it. Khoie did not sign their part of the contract so essentially purchasers here have no choice in the matter as contracts were not signed and exchanged. There is no contract legally in place yet. Khoie have agreed to honour the original purchase terms but will of course have to issue a new contract to all purchasers.

If you don't want to proceed without escrow then you get all your money back. However escrow has not applied to any other Khoie sales and given that only 30% of the price is paid upfront anyway, the deal is not as risky as paying 100% before completion. Given that RAKEEN would be very unlikely to let any project fail on the Al Marjan Island the lack of escrow is not really a problem here. It would surely be better for all SP purchasers to carry on and proceed without escrow, rather than have their money back and lose out on a 40% increase in prices to date.

So overall there is nothing to worry about here. Khoie will want the money removed from the escrow account and deposited into their "ordinary" account along with the signing of a new contract.

The only downside might be if the monies paid into escrow have to be refunded back to UK purchasers who don't have a Dirham account. There would obviously be an exchange rate loss by receiving the monies back in sterling and then converting them to Dirhams again. Much better if Khoie could arrange for an authority to be signed simply to transfer the funds from escrow straight into the other Khoie account, so there is no exchange rate loss here.

I haven't received any correpsondence from either Khoie or SP about this matter yet.

[rbj]

spot on,........ I am in dubai and will visit khoie this week.... Not to picket just to pop in and find out the latest info from them. As I said before I dont have a problem just pleased with my investment but I will post any further updates

[rbj]

spot on,........ I am in dubai and will visit khoie this week.... Not to picket just to pop in and find out the latest info from them. As I said before I dont have a problem just pleased with my investment but I will post any further updates

[Yousuf27]

Originally Posted by rbj

spot on,........ I am in dubai and will visit khoie this week.... Not to picket just to pop in and find out the latest info from them. As I said before I dont have a problem just pleased with my investment but I will post any further updates

rbj -would you mind asking them for updated completion dates for the various blocks and when they predict the utilities will be put in place by the Master developer. It was muted at one point that the the early blocks might complete before the power is in.

[irfan786]

hi hackson i compained about me not receiving my contract to the ceo of khoie and the emaied me about the change of contract on friday but not officialy in writting for me to accept.

[bjackson]

Originally Posted by irfan786

hi hackson i compained about me not receiving my contract to the ceo of khoie and the emailed me about the change of contract on Friday but not officially in writing for me to accept.

I have had the same email today Sunday and have sent an email back asking about money transfer as Morrismarina mentioned, i will post an update when i get it.
Cheers
Bruce

[soennecken]

I bought direct from KHOIE with out escrow. This normal for RAK

[jameson]

Originally Posted by Yousuf27

Zee07, I bought a studio here last month. I reckon (including balcony but excluding parking) I bought at AED 1,317. If I include the parking space cost in the price then the rate rises to AED 1,419 p sq ft. I quote both rates so that you can ensure you're comparing like with like

Hi Yousuf, i am new to this forum and am interested in investing also in a studio in la hoya bay. When you quote that you bought at AED 1,317/sq ft, is that based on the gross area of approx ~540 sq ft or are you buying at a given net area of say approx 20% less than this? ie was your total purchase price in the region of ~AED 710k? your expert advice would be much appreciated!

[Yousuf27]

Hi Jamesaon, I paid AED 579,566 plus AED 45,000 for the parking space.The area was as quoted in the floor plans on the LHB website. I'm not sure if the areas given there are gross or net but they do separate the apt area from the balcony. My studio is in G block. In the early blocks the apts are all a lot larger than in the later blocks. Studios in A & B are over 50 sq m whereas in later blocks they are only 36 sq m.This certainly follows trough on one beds as well. They started at just over 80 sq m in the early blocks and come down to around 60 sq m later on. Comparing price per sq ft from development to devlopment seems difficult as there seem to be lots of different pricing methods. Some developers boost the area by including your share of the common areas- i.e. the corridor out to the lift - which seems a total rip off approach!! Hope this helps.

[jameson]

Originally Posted by Yousuf27

Hi Jamesaon, I paid AED 579,566 plus AED 45,000 for the parking space.The area was as quoted in the floor plans on the LHB website. I'm not sure if the areas given there are gross or net but they do separate the apt area from the balcony. My studio is in G block. In the early blocks the apts are all a lot larger than in the later blocks. Studios in A & B are over 50 sq m whereas in later blocks they are only 36 sq m.This certainly follows trough on one beds as well. They started at just over 80 sq m in the early blocks and come down to around 60 sq m later on. Comparing price per sq ft from development to devlopment seems difficult as there seem to be lots of different pricing methods. Some developers boost the area by including your share of the common areas- i.e. the corridor out to the lift - which seems a total rip off approach!! Hope this helps.

Thanks for your immediate reply yousuf.
I have been offered 1150/sq ft for a 4th floor studio in oyster (sea/pool view) but the area they are using for this price is 570sq ft.
This same studio is quoted as being 440sq ft in size (same as yours) on the khoie website.
The total price they are looking for is AED 656k which I figure is then working out at 656000/440 = ~1490/sq ft? Plus parking is an extra AED 55,000

There have got to be better deals than studios for 1490/sq ft out there?
It is on the 30/70 payment plan though.
Your advice is appreciated, thanks
jameson

[Yousuf27]

Originally Posted by jameson

Thanks for your immediate reply yousuf.
I have been offered 1150/sq ft for a 4th floor studio in oyster (sea/pool view) but the area they are using for this price is 570sq ft.
This same studio is quoted as being 440sq ft in size (same as yours) on the khoie website.
The total price they are looking for is AED 656k which I figure is then working out at 656000/440 = ~1490/sq ft? Plus parking is an extra AED 55,000

There have got to be better deals than studios for 1490/sq ft out there?
It is on the 30/70 payment plan though.
Your advice is appreciated, thanks
jameson

Jameson; - Interesting; - I would use the lower figure from the Khoie website and then you wont be disappointed. I doubt that it will be bigger than Khoie are stating and that size seems to be standard for the later blocks. I wonder if the seller has boosted the area using this stunt of including the apt's share of the common areas? Charging a premium on the Khoie asking price for parking is a bit cheeky isn't it!!

[rags]

Originally Posted by jameson

Thanks for your immediate reply yousuf.
I have been offered 1150/sq ft for a 4th floor studio in oyster (sea/pool view) but the area they are using for this price is 570sq ft.
This same studio is quoted as being 440sq ft in size (same as yours) on the khoie website.
The total price they are looking for is AED 656k which I figure is then working out at 656000/440 = ~1490/sq ft? Plus parking is an extra AED 55,000

There have got to be better deals than studios for 1490/sq ft out there?
It is on the 30/70 payment plan though.
Your advice is appreciated, thanks
jameson

I do not know how the cost of the terrace (where there is one) works. It should obviously not cost anywhere near what the per sq ft cost of apt and balcony combined. So, if you are buying a studio (x sq ft) with balcony (y sq ft), your per sq ft should work out to cost divided by (x+y) for an apple-to-apple comparison for most quotes. Parking is extra. You can get the developer's entire price list and details any time.

BTW, I understand that the prices are being put up another 10% in July.

[bjackson]

Had an email from Khoie today confirming 10% price increase on 1st July
Cheers
Bruce

[Yousuf27]

Hello all; - has everyone noted that the "Payment Plans" have altered again on the LHB website. Good news is that the 15/15/70 deal seems to be back for all units - no matter which block. Bad news appears to be the detail of the Financing for those (like me!) who intended to use it for the 70% completion payment. I don't pretend to understand all of what is written; the part about when payments begin is particularly confusing to me, and I have e-mailed khoie to clarify what it means. The interest rate is a big worry though; 1.5% per month is a lot and it isn't the deal that had been talked about in the earlier contracts. Does anyone think finance will be available from other sources once units are completed as if my understanding of 1.5% per month is correct it means ludicrous repayments - loads more than one could expect to be able to recover in rent? I'll be extremely happy if someone can tell me I have it all wrong - and that I'm clearly a financial f**kwit!

[rags]

Originally Posted by Yousuf27

Hello all; - has everyone noted that the "Payment Plans" have altered again on the LHB website. Good news is that the 15/15/70 deal seems to be back for all units - no matter which block. Bad news appears to be the detail of the Financing for those (like me!) who intended to use it for the 70% completion payment. I don't pretend to understand all of what is written; the part about when payments begin is particularly confusing to me, and I have e-mailed khoie to clarify what it means. The interest rate is a big worry though; 1.5% per month is a lot and it isn't the deal that had been talked about in the earlier contracts. Does anyone think finance will be available from other sources once units are completed as if my understanding of 1.5% per month is correct it means ludicrous repayments - loads more than one could expect to be able to recover in rent? I'll be extremely happy if someone can tell me I have it all wrong - and that I'm clearly a financial f**kwit!

Yousuf, If you are a 'pre-approved' case for taking finance from Khoie for the balance 70%, I thought you might also have agreed to the specific terms of financing under the contract of purchase. If that is the case, you would simply be bound by those terms rather than anything they might announce now. If there were no specific terms in the contract for the financing when you purchased but merely a reference to potential financing as per terms to be decided, then you are exposed to the vagaries of the market and Khoie's often-changing terms.

As for when the 3rd payment instalment commences, the site seems to say that it commences on month X+2, if the 2nd instalment was payable as per contract in month X.

[Yousuf27]

Hello Rags.There has been a lot of delay getting contract documents out from Khoie - notsure why.Some of us have been sitting waiting with just Booking Formsin place for a long time. I agree re the point on financing you make - if it wasn't exactly specified then one is open to the vagaries of the market. It does seem a quite unimaginative and rather irksome scheme in it's latest form. Since the deal is supposed to be an attraction to buyers I think they could have managed something less breath-takingly punitive.

I still don't understand the comment about the 3rd payment installment but I'll post here if and when I get an answer from Khoie. What concerns me most is that there is an indication they might be looking for loan repayments before completion. I don't know how that could work unless the financing Bank is agreeing to mortgages on uncompleted property? The real worry would be having to make the huge repayments with not even the slightest possibility of any income to offset the payment. I do have more than one unit and since I want to keep one I could flip another one to pay it off. Not sure that resales using that "fully transferrable" finance would be a very good selling point. Who the hell is going to take a deal like that on!

Presumably upon completion the units would become more "mortgageable" using finance from other more competitive sources. What do people think?

[harbkalsi]

Originally Posted by jameson

Thanks for your immediate reply yousuf.
I have been offered 1150/sq ft for a 4th floor studio in oyster (sea/pool view) but the area they are using for this price is 570sq ft.
This same studio is quoted as being 440sq ft in size (same as yours) on the khoie website.
The total price they are looking for is AED 656k which I figure is then working out at 656000/440 = ~1490/sq ft? Plus parking is an extra AED 55,000

There have got to be better deals than studios for 1490/sq ft out there?
It is on the 30/70 payment plan though.
Your advice is appreciated, thanks
jameson

Iv been trying to buy 1 or 2 units of 1BR in floors above 3rd with pool/sea views and total areas of approx 1000sqft. I have been offered quite a number of units from different agencies. I have analysed most of the offers and seen that there is no set pricing based only on floor, views, area, bedrooms, etc. There is a very important variable which most of us seem to be missing and that is the layout of the unit itself. Some units are better designed than others offering very good views while some views, even though sea facing, are very rudely obstructed by the next units balcony, etc. Each unit has a unit number and the exact layout and floor plan can easily be seen on Khoie website. So generalisation of pricing might be a difficult thing as there might be two 1BR apartments on the same block, same floor, both sea facing and yet one will work out to 1100 persqft and the other 1225 per sqft. Hope this info would be helpful here.

[Cyrus55]

Hi harbkalsi,
Are these prices (1100-1225) including balconies or only build up area?

[rags]

Originally Posted by harbkalsi

Iv been trying to buy 1 or 2 units of 1BR in floors above 3rd with pool/sea views and total areas of approx 1000sqft. I have been offered quite a number of units from different agencies. I have analysed most of the offers and seen that there is no set pricing based only on floor, views, area, bedrooms, etc. There is a very important variable which most of us seem to be missing and that is the layout of the unit itself. Some units are better designed than others offering very good views while some views, even though sea facing, are very rudely obstructed by the next units balcony, etc. Each unit has a unit number and the exact layout and floor plan can easily be seen on Khoie website. So generalisation of pricing might be a difficult thing as there might be two 1BR apartments on the same block, same floor, both sea facing and yet one will work out to 1100 persqft and the other 1225 per sqft. Hope this info would be helpful here.

Hi Harbkalsi, I have sent you a PM.

[Yousuf27]

Originally Posted by Cyrus55

Hi harbkalsi,
Are these prices (1100-1225) including balconies or only build up area?

Guys, I think it's almost impossible to apply a general psf here. There are too many different designs, floor areas, aspects, and views. It would be better to look at everything you can find available on the market and then make your judgement on the unit you want based on that actual unit, how it suits you, how much you want it - and all those other prices you've already trawled through. It's the only way - assuming it isn't turning a buck only that interests you - and that you're actually interested in the development and the unit you're buying. Although we're all here to make money I apply the rule that I wouldn't buy anything I wouldn't live in!